Fujitsu 2011 Annual Report Download - page 119

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Net deferred tax assets are included in the consolidated balance sheets as follows:
Yen
(millions)
U.S. Dollars
(thousands)
At March 31 2010 2011 2011
Current assets—others ¥ 76,308 ¥ 76,666 $ 923,687
Investments and long-term loans—others 83,279 72,093 868,590
Current liabilities—others (5) (50) (602)
Long-term liabilities—others (30,524) (34,330) (413,615)
Net deferred tax assets ¥129,058 ¥114,379 $1,378,060
The Company and its wholly owned subsidiaries in Japan have adopted the consolidated tax return system of Japan.
Tax losses can be carried forward up to 7 years in Japan, 20 years in the United States, and indefinitely in the United Kingdom.
Realization depends on the abilities of the companies to generate sufficient taxable income prior to the expiration of the tax loss
carryforwards. With respect to deferred tax assets, we recorded a valuation allowance to cover the amount in excess of what we are
likely to recover in the future.
10. Shareholders’ Equity
The number of authorized and issued shares of common stock at March 31, 2010 and 2011 is stated as follows:
Ordinary shares (no par value)
At March 31 2010 2011
The number of authorized shares 5,000,000,000 5,000,000,000
The number of issued shares 2,070,018,213 2,070,018,213
11. Commitments and Contingent Liabilities
Commitments outstanding at March 31, 2011 for purchases of property, plant and equipment were approximately ¥7,585 million
($91,386 thousand).
Contingent liabilities for guarantee contracts amounted to ¥2,927 million ($35,265 thousand) at March 31, 2011 and referred
mainly to ¥2,904 million ($34,988 thousand) guarantees given for employees’ housing loans.
12. Financial Instruments
1. Status of Financial Instruments
(1) Policies for Financial Instruments
The Group carries out its financial activities in accordance with the “Fujitsu Group Treasury Policy,” and primarily obtains funds through
bank borrowing and the issuance of corporate bonds based on funding requirements of its business activities. After the adequate liquidity
for its business activities has been ensured, the Group invests temporary excess funds in financial assets with low risk. The Group utilizes
derivative transactions only for hedging purposes and not for speculative or dealing purposes.
(2) Description and Risks of Financial Instruments
Trade receivables are exposed to customer credit risk. Additionally, some trade receivables are denominated in foreign currencies in
conjunction with the export of products and exposed to exchange rate fluctuation risk. Investment securities are comprised primarily of
certificates of deposit and available for sale securities issued by the customers. The certificates of deposit are held for fund management
and the shares are held for maintaining and strengthening business relationship with the customers. Shares are exposed to market
price fluctuation risk and financial risk of the company invested.
117FUJITSU LIMITED ANNUAL REPORT 2011
FACTS & FIGURES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS